Re mortgage needed or not?

tsvp

Have had my mortgage (was first time buyer) coming up for 2 years now with Santander. They have sent a letter saying after the 2 years is complete they will automatically move us to standard variable rate.
Is this the point I should be approaching brokers to see what is out there or do I just leave as is?
Also looking to move from 35 year to 25 year.

Any recommendations greatly appreciated with what's going on in the mortgage market just now.

Thanks.

crazygoog

Yes, get looking asap! Martin Lewis recommended moving in for a long term fix very recently. Equip yourself here to give yourself an idea https://compare.moneyadviceservice.org.uk/mortgages/Step1

ShALLaX

Crystal balls at the ready...

I think it's mostly agreed upon that interest rates can't stay this low forever (read: much longer?) As such, if you look for a fixed rate now, they'll be slightly higher than they were a year or two ago in order to allow the lenders to make some money of you if you decide to fix now and rates rocket (they're covering themselves, basically).

However, it's best do what's right for you and your circumstances. In the event of interest rates rocketing up, could you afford to be on a variable rate? It might be better to pick a slightly less desirable rate that is fixed for the peace of mind provided that you can afford the fixed rate to begin with.

The answer really rests with your personal circumstances and your attitude towards risk.

StuC75

Santanders SVR is at 4.74%. So what is your current LTV Rate?

As you are only 2 years in, you may be affected by how prices have changed in your area as to what potential LTV you have (i.e. if slightly down you may still have the same LTV rate)..

this may dictate what other products you have available..

regarding reducing the term you may want to just look to making manual payments - and this will have the same affect as reducing the term.

leunger

always shop around for a better deal.

tsvp

Thanks for advice. Think I am going to book in to see a mortgage broker/adviser next week. Try and get a free one (if there is such a thing, I am under the impression they get commission off the back of the deal from the lender but maybe wrong?? )

Stuc75- I am currently paying 5.79% interest fixed.

Is it worth also popping into a Santander bank to see what they can do for me or just stick with mortgage broker?

leunger

i have been using the broker for both our first mortgage and remortgaging. mine charge £300 when a mortgage application is completed successfully regardless how many visit and meeting we have. They also get a commission from the lenders too that why the fee seem to be lower than we first thought.

if you mention to your broker about Santander, they can look into it for you and give you advice on that too.

I normally don't like paying for service that i can get for free but the £300 for my mortgage broker is once that i don't mind and consider as money well spent.